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Tag: ROKU

  • My Quest to Fix a Crashing Roku App Provides a Warning About AI

    My Quest to Fix a Crashing Roku App Provides a Warning About AI

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    Two words in this statement popped out to me like a flying dinosaur in a mixed-reality headset: when possible. When I flagged this in a subsequent call, Roku reassured me that a fix for my issue will happen. In the worst-case scenario, if the problem won’t be solved in the next OS, sufferers will be provided some incantation to have their televisions backdated to the previous operating system. (Does this mean we’re back to hitting that home button five times?) And if that doesn’t work, which Roku says totally won’t be the case, the company will make sure to make everyone satisfied somehow. The company was ready to satisfy me right away, offering me a new TV. I declined, since they weren’t offering it to everyone whose Netflix was crashing.

    I think Roku is dealing in good faith. I’d been happy with my Roku-powered smart TV, until I wasn’t because it kept crashing. I take Roku at its word that it’s working on the problem and might actually fix it. I acknowledge that updating software on a static platform like a television set is a particular challenge. And God knows how common bugs are in software.

    In any case, my inability to stream Netflix without resetting the TV every time I watch a movie is a pretty trivial problem. And you know what? Even if I never watched Netflix again, I’d live. Now that Netflix has added advertising to its business model, I’m dreading the day when everyone on the service is exposed to endless commercials, unless we pay even more than the already out-of-control monthly fee. Beef was great, but I’d pass if every 10 minutes it was interrupted by pharma ads.

    Nevertheless, my Roku problem is a warning. Artificial intelligence is thrusting us into an era that intertwines our lives with digital technology more than ever. If you think that our current software is complicated, just wait until everything works on neural nets! Even the people who create those are mystified about how they work. And, boy, can things go wrong with that stuff. Just this week, OpenAI suffered a few hours where its chatbots blurted out incoherent comments, evoking the word salad of a stroke victim or the Republican front-runner. And Google had to temporarily stop its Gemini LLM from generating images of people, because of what it called “historical inconsistencies” in how it depicted the diversity of humanity. These are disturbing portents. We’re now in the process of turning over much of our activities to these systems. If they fail, “community discussions” won’t save us.

    Time Travel

    Digital technology is too damn complicated, and we’re doomed to a life of bug-resolution. That was my observation 30 years ago when I wrote Insanely Great, in a passage spurred by a freezing problem I had with my Macintosh IIcx. As the Mac operating system struggled to handle a complicated ecosystem of extensions, boundary-pushing applications, and data at a scale the original had not imagined, bugs appeared that required Sherlock Holmes–level sleuthing to resolve.

    This was the background to my Macintosh troubles: the computer had become more complicated than anyone had imagined. I enacted a short-term fix, stripping the system of possible offenders. I was stepping back in time, making the Mac emulate the simpler, though less useful, computer I once had. As I wiped out Super Boomerang, Background Printing, On Location and Space Saver, I pictured myself as Astronaut Dave in 2001, determinedly yanking out the chips in the supercomputer H.A.L., with the uncomfortable feeling that I was deconstructing a personality. When I finished my Macintosh IIcx was not so atavistic as to sing “Daisy,” but it was, in a Mac sense, no longer itself. On the other hand, it no longer hung.

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    Steven Levy

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  • Showbiz Stocks 2023: Tech Surges, Big Media Companies Weather Strikes And Streaming Gets A Reboot

    Showbiz Stocks 2023: Tech Surges, Big Media Companies Weather Strikes And Streaming Gets A Reboot

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    Roku was a champ. Lionsgate surged and Netflix jumped. Tech shares went bananas in 2023. Big media stocks had a mixed year of transition dominated by Hollywood strikes with linear television declines and streaming losses.

    Paramount fell. Disney and Fox were basically flat on the year. Giants Comcast and Sony, which both have other businesses like broadband or games and music, both had nice runs. Warner Bros Discovery gained a bit. All are pushing for profitability in streaming and progress there will influence how the stocks perform in 2024.

    Relatively speaking, 2023 was a real bonanza compared with a truly dismal 2022 when only two – that’s two – media stocks rose for the year: WWE (now part of TKO Group) and Nexstar.

    It was a surprisingly good 2023 for stocks overall with the S&P 500 closing up more than 24% for the year. Investors shrugged off high interest rates and inflation, recession fears, threats of a government shutdown, a brief banking crisis and international strife, turning around a year initially expected to be rather glum for markets.

    Tech in particular brought the heat, fueled in large part by an AI frenzy. The famous FAANG group of stocks — Facebook (now Meta), Amazon, Apple, Netflix and Google (now Alphabet) — has morphed into The Magnificent Seven. Newly coined this year by an analyst (from the movie), it’s Alphabet, Amazon, Apple, Meta, Microsoft, Invidia and Tesla. This gang contributed significantly to overall gains. Shares of adjacent tech from Snap to Spotify also rallied.

    Exhibitors were split to lower amid angst at 2024’s box office prospects. Broadcast stocks fell, with advertising soft but set for a political tsunami.

    And the year year wrapped with a flourish of M&A chatter that hasn’t yet but could also buoy shares in 2024. It doesn’t hurt that the Federal Reserve indicated it may finally cut interest rates in 2024 after 11 hikes over the last two years.

    A Closer Look

    Roku was king of media in 2023, up 119%.

    Remember back in March when the company worriedly announced that it had a quarter of its cash at Silicon Valley Bank, which wiped out in the biggest bank collapse since 2008. Disaster was averted when the FDIC agreed to fully guarantee all deposits and Roku took it from there. The business is benefitting as television ad dollars shift from linear to digital, as it expands overseas and as it sells lots of branded Smart TVs. May be a potential takeover target.

    Disney, the only showbiz stock in the 30-member DJIA, nosed up slightly for the year. That’s well off its high for the year of $110 in January, when the market was flushed with enthusiasm at CEO Bob Iger’s return. But these are complicated times with linear television in steady decline, streaming still in the red and Disney facing a string of box office underachievers.

    Iger notably acquired the rest of Hulu from Comcast, paying a previously agreed upon $8.6 billion minimum. It may owe more as both sides have teams working to establish a valuation. He’s waffled a bit on entertaining offers for ABC and linear networks and is looking for a strategic partner for ESPN ahead of an eventual streaming launch. Disney is reportedly doing a deal with Reliance for its assets in India.

    Wall Streeters hope the new year will bring an update on succession planning, and perhaps on an NBA contract renewal. One analyst says he’s been getting lots of client calls on Disney recently. “They’ll say things like, ‘I used to own Disney. I just feel like it could be an interesting stock. There are so many moving parts right now, could you just get me up to speed?’”

    It looks like the company will enter 2024 facing a proxy fight with activist investor Nelson Peltz, who wants two seats on the board — for himself and former Disney CFO Jay Rasulo. Peltz launched a similar adversarial campaign last year but backed off in February before a showdown at the annual meeting.

    Warner Bros Discovery is up about 10% but off its high and from the $24 it traded at when Discovery and Warner Media merged in April 2022. CEO David Zaslav is focused on boosting cash flow and paying down the company’s massive debt, which stood at $45.3 billion at the end of the September quarter. Investors did not love that quarter, spooked in particular by a glum advertising outlook.

    The ad market seems to have entered a new phase not beneficial for legacy media, which is the loss of pricing power, says one analyst. “Historically, as linear TV audiences shrunk, big companies could offset that by raising the prices they charged advertisers for the remaining viewers. In the last year, that game seems to have failed,” unless it’s sports.

    With the April 8 two-year anniversary of the Discovery-Warner Media merger, WBD can explore deals without a big tax penalty. Zaslav has had conversations with Paramount’s controlling shareholder Shari Redstone and CEO Bob Bakish about a possible deal. Warners could also be a seller but that’s hard too, in part due to its huge stable of legacy cable networks.

    Warner Bros Studio and HBO “are good businesses with solid creative trajectories, and, to us, the heart of the company,” said one analyst.

    Paramount Global, meanwhile, fell 17%. It’s financially squeezed so seen as likeliest to do a deal sooner rather than later. Conversations with Zaslav as well as with Skydance Media CEO David Ellison have touched on both an outright sale as well as the possibility of Redstone selling her interest in NAI, the family holding company that houses her Paramount stock. Regular Paramount shareholders would not be getting any premium for their shares in that scenario, maybe one reason deal talk has not moved the needle on the stock. Skydance would not face regulatory hurdles.

    Among big cap entertainment stocks, Netflix gained 63%. Studios are newly willing to license shows. It has stronger balance sheet than most of big media and a larger backlog of unreleased content of anyone but Disney, all of it dedicated to streaming. It has added an advertising tier and is seeing upside from a crackdown on password sharing.

    Smaller Lionsgate had a fantastic run, up a whopping 88% as it ended the year closing the acquisition of eOne from Hasbro and announcing plans to combine the studio with a SPAC early next year in a separation from Starz that it hopes will unlock value.

    Fox is still well liked by some analysts — no streaming losses and a focus on live sports and news. But investors like growth and some wonder about the end game. “It just is what it is,” said one. With linear television shrinking and the cost of sports rights rising, “What’s the narrative?”

    Fox is facing a $2.7 billion defamation lawsuit by a second voting machine company, Smartmatic. Earlier this year, it agreed to an $800 million settlement just before trial in a first suit brought by Dominion Voting Systems.

    In exhibition, the movie theater gig is still a tough one and the strikes disrupted production, pushing some big films back, which will slow the pace of new release in 2024. Cinema stocks ended the year mixed, with Cinemark – the No. 3 chain — showing sharp gains. The worlds’ biggest exhibitor AMC Entertainment plunged, but analysts don’t mind. It’s “finally trading roughly in line with its pre-meme historical multiple,” said one.

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    jillg366

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  • Creative Planning Purchases 3,503 Shares of Roku, Inc. (NASDAQ:ROKU)

    Creative Planning Purchases 3,503 Shares of Roku, Inc. (NASDAQ:ROKU)

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    Creative Planning boosted its position in Roku, Inc. (NASDAQ:ROKUFree Report) by 22.5% during the second quarter, HoldingsChannel reports. The fund owned 19,075 shares of the company’s stock after buying an additional 3,503 shares during the quarter. Creative Planning’s holdings in Roku were worth $1,220,000 as of its most recent filing with the SEC.

    Other hedge funds and other institutional investors have also recently modified their holdings of the company. ICA Group Wealth Management LLC bought a new stake in shares of Roku during the fourth quarter valued at about $25,000. Machina Capital S.A.S. bought a new stake in shares of Roku during the first quarter valued at about $26,000. Exchange Traded Concepts LLC increased its position in shares of Roku by 980.6% during the first quarter. Exchange Traded Concepts LLC now owns 670 shares of the company’s stock valued at $44,000 after buying an additional 608 shares during the period. Manchester Capital Management LLC bought a new stake in shares of Roku during the first quarter valued at about $44,000. Finally, Covestor Ltd grew its holdings in shares of Roku by 693.2% during the first quarter. Covestor Ltd now owns 349 shares of the company’s stock worth $44,000 after purchasing an additional 305 shares in the last quarter. 69.21% of the stock is currently owned by institutional investors.

    Roku Stock Performance

    NASDAQ:ROKU opened at $66.07 on Friday. The firm has a market cap of $9.35 billion, a PE ratio of -14.00 and a beta of 1.78. Roku, Inc. has a fifty-two week low of $38.26 and a fifty-two week high of $98.44. The business has a 50 day moving average price of $76.58 and a 200-day moving average price of $69.00.

    Roku (NASDAQ:ROKUGet Free Report) last released its quarterly earnings data on Thursday, July 27th. The company reported ($0.76) earnings per share for the quarter, beating analysts’ consensus estimates of ($1.28) by $0.52. The firm had revenue of $847.20 million during the quarter, compared to analyst estimates of $774.65 million. Roku had a negative return on equity of 25.15% and a negative net margin of 20.54%. The business’s quarterly revenue was up 10.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.82) earnings per share. Research analysts predict that Roku, Inc. will post -5.32 EPS for the current year.

    Analysts Set New Price Targets

    Several research analysts have recently commented on ROKU shares. Pivotal Research boosted their price objective on Roku from $53.00 to $58.00 and gave the stock a “sell” rating in a report on Friday, July 28th. Morgan Stanley boosted their price objective on Roku from $50.00 to $55.00 and gave the stock an “underweight” rating in a report on Monday, July 31st. Oppenheimer boosted their price objective on Roku from $90.00 to $110.00 and gave the stock an “outperform” rating in a report on Wednesday, September 6th. Wells Fargo & Company boosted their price objective on Roku from $63.00 to $84.00 and gave the stock an “equal weight” rating in a report on Friday, July 28th. Finally, DA Davidson upped their target price on Roku from $100.00 to $102.00 and gave the stock a “buy” rating in a research note on Thursday, September 7th. Three investment analysts have rated the stock with a sell rating, fourteen have issued a hold rating and ten have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $81.48.

    Read Our Latest Stock Report on ROKU

    Insider Activity at Roku

    In related news, insider Gidon Katz sold 1,968 shares of the company’s stock in a transaction that occurred on Thursday, September 14th. The stock was sold at an average price of $79.14, for a total transaction of $155,747.52. Following the completion of the transaction, the insider now owns 22,572 shares in the company, valued at $1,786,348.08. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. In related news, CAO Matthew C. Banks sold 1,259 shares of the company’s stock in a transaction that occurred on Tuesday, September 5th. The stock was sold at an average price of $82.69, for a total transaction of $104,106.71. Following the completion of the transaction, the chief accounting officer now owns 6,017 shares in the company, valued at $497,545.73. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Gidon Katz sold 1,968 shares of the company’s stock in a transaction that occurred on Thursday, September 14th. The shares were sold at an average price of $79.14, for a total value of $155,747.52. Following the transaction, the insider now owns 22,572 shares of the company’s stock, valued at approximately $1,786,348.08. The disclosure for this sale can be found here. Insiders sold a total of 19,208 shares of company stock worth $1,629,896 over the last quarter. 13.63% of the stock is owned by corporate insiders.

    Roku Profile

    (Free Report)

    Roku, Inc, together with its subsidiaries, operates a TV streaming platform. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The company also provides digital advertising and related services, including the demand-side ad platform and content distribution services, such as subscription and transaction revenue shares; media and entertainment promotional spending services; premium subscriptions services; video and display advertising services; and sells branded channel buttons on remote controls of streaming device.

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    Want to see what other hedge funds are holding ROKU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Roku, Inc. (NASDAQ:ROKUFree Report).

    Institutional Ownership by Quarter for Roku (NASDAQ:ROKU)

    Receive News & Ratings for Roku Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Roku and related companies with MarketBeat.com’s FREE daily email newsletter.

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  • Cathie Wood Sold More Tesla Stock. She Might Not Be Done.

    Cathie Wood Sold More Tesla Stock. She Might Not Be Done.

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    Cathie Wood Sold More Tesla Stock. She Might Not Be Done.

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  • Roku, Inc. (NASDAQ:ROKU) Shares Sold by SVB Wealth LLC

    Roku, Inc. (NASDAQ:ROKU) Shares Sold by SVB Wealth LLC

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    SVB Wealth LLC lowered its holdings in Roku, Inc. (NASDAQ:ROKUGet Rating) by 94.9% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm owned 5,423 shares of the company’s stock after selling 101,733 shares during the quarter. SVB Wealth LLC’s holdings in Roku were worth $221,000 as of its most recent filing with the SEC.

    A number of other hedge funds and other institutional investors also recently bought and sold shares of ROKU. Renaissance Technologies LLC lifted its holdings in Roku by 772.1% in the first quarter. Renaissance Technologies LLC now owns 2,808,100 shares of the company’s stock valued at $351,771,000 after acquiring an additional 2,486,100 shares during the period. Wellington Management Group LLP increased its position in shares of Roku by 97.2% in the first quarter. Wellington Management Group LLP now owns 4,174,003 shares of the company’s stock valued at $522,878,000 after buying an additional 2,057,633 shares in the last quarter. Two Sigma Investments LP purchased a new position in shares of Roku in the third quarter valued at $31,636,000. ANTIPODES PARTNERS Ltd increased its position in shares of Roku by 86.0% in the fourth quarter. ANTIPODES PARTNERS Ltd now owns 981,612 shares of the company’s stock valued at $39,951,000 after buying an additional 453,787 shares in the last quarter. Finally, Sumitomo Mitsui Trust Holdings Inc. increased its position in shares of Roku by 6.0% in the fourth quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 7,847,444 shares of the company’s stock valued at $319,391,000 after buying an additional 444,022 shares in the last quarter. Institutional investors and hedge funds own 66.11% of the company’s stock.

    Roku Stock Performance

    NASDAQ ROKU opened at $56.05 on Monday. Roku, Inc. has a fifty-two week low of $38.26 and a fifty-two week high of $105.85. The business has a 50 day moving average price of $59.12 and a two-hundred day moving average price of $56.41.

    Roku (NASDAQ:ROKUGet Rating) last released its quarterly earnings results on Wednesday, April 26th. The company reported ($1.38) earnings per share for the quarter, topping analysts’ consensus estimates of ($1.44) by $0.06. The firm had revenue of $741.00 million during the quarter, compared to analysts’ expectations of $707.59 million. Roku had a negative return on equity of 24.71% and a negative net margin of 21.23%. Roku’s quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.19) EPS. As a group, sell-side analysts forecast that Roku, Inc. will post -5.23 EPS for the current fiscal year.

    Analysts Set New Price Targets

    A number of brokerages have recently weighed in on ROKU. Loop Capital raised their price target on Roku from $56.00 to $75.00 and gave the company a “buy” rating in a research report on Thursday, February 16th. SpectralCast restated a “maintains” rating on shares of Roku in a research report on Thursday, April 27th. Wolfe Research upgraded Roku from an “underperform” rating to a “peer perform” rating in a research report on Tuesday, March 14th. Morgan Stanley lifted their price objective on Roku from $45.00 to $50.00 and gave the stock an “underweight” rating in a research report on Friday, February 17th. Finally, Robert W. Baird began coverage on Roku in a research report on Tuesday, April 11th. They set a “neutral” rating and a $71.00 price objective for the company. Four analysts have rated the stock with a sell rating, ten have assigned a hold rating and ten have assigned a buy rating to the stock. Based on data from MarketBeat.com, Roku presently has an average rating of “Hold” and an average price target of $71.04.

    Insiders Place Their Bets

    In other Roku news, insider Gidon Katz sold 3,694 shares of the company’s stock in a transaction that occurred on Wednesday, May 10th. The stock was sold at an average price of $57.50, for a total value of $212,405.00. Following the completion of the transaction, the insider now owns 15,450 shares in the company, valued at approximately $888,375. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In related news, SVP Gilbert Fuchsberg sold 3,242 shares of the company’s stock in a transaction that occurred on Thursday, March 2nd. The stock was sold at an average price of $61.93, for a total transaction of $200,777.06. Following the sale, the senior vice president now directly owns 35,103 shares of the company’s stock, valued at approximately $2,173,928.79. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Gidon Katz sold 3,694 shares of the company’s stock in a transaction that occurred on Wednesday, May 10th. The shares were sold at an average price of $57.50, for a total value of $212,405.00. Following the sale, the insider now directly owns 15,450 shares in the company, valued at $888,375. The disclosure for this sale can be found here. Insiders sold a total of 15,748 shares of company stock worth $958,909 in the last 90 days. 13.79% of the stock is owned by company insiders.

    Roku Profile

    (Get Rating)

    Roku, Inc engages in the provision of a streaming platform for television. It operates through the Platform and Devices segments. The Platform segment includes digital advertising and related services including the demand-side platform and content distribution services such as subscription and transaction revenue shares, media and entertainment promotional spending, the sale of premium subscriptions, and the sale of branded channel buttons on remote controls.

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    Want to see what other hedge funds are holding ROKU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Roku, Inc. (NASDAQ:ROKUGet Rating).

    Institutional Ownership by Quarter for Roku (NASDAQ:ROKU)

    Receive News & Ratings for Roku Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Roku and related companies with MarketBeat.com’s FREE daily email newsletter.

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  • Roku stock gains after earnings beat, though ad market remains challenging

    Roku stock gains after earnings beat, though ad market remains challenging

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    Roku Inc. shares moved 2% higher in Wednesday’s after-hours action as the streaming-media company cited continued ad-market pressures but topped expectations for its latest quarter.

    The company reported a first-quarter net loss of $193.6 million, or $1.38 a share, compared with a loss of $26.3 million, or 19 cents a share, in the year-earlier quarter. Analysts tracked by FactSet were expecting a $1.47 loss per share.

    Roku…

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  • Roku to lay off 200 employees, exit some leases to cut costs

    Roku to lay off 200 employees, exit some leases to cut costs

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    Shares of Roku Inc.
    ROKU,
    +5.46%

    rallied 2.7% in premarket trading Thursday, after the streaming-media company disclosed that it would lay off 200 employees, or about 6% of its workforce as part of a cost-cutting plan. The plan will also include the exit and sublease, or cease the use of, certain office facilities. The company expects to record charges of $30 million to $35 million as a result of the plan, which will include severance payments, notice pay and employee benefit contributions. Most of the charges will be recorded in the fiscal first quarter, and the job cuts will be “substantially complete” by the end of the second quarter. The stock has soared 57.0% over the past three months but has tumbled 50.8% over the past 12 months, while the S&P 500
    SPX,
    +1.42%

    has lost 12.5% over the past year.

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  • Roku says it ‘does not know’ how much of its cash it will be able to recover from SVB

    Roku says it ‘does not know’ how much of its cash it will be able to recover from SVB

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    Streaming platform Roku Inc.
    ROKU,
    -0.88%

    on Friday said it “does not know” to what extent it would be able to recover the cash it has deposited with the recently-failed Silicon Valley Bank. Roku said it had cash and cash equivalents of around $1.9 billion as of Friday, with around $487 million — or roughly 26% — at the bank. Roku said its deposits with SVB were “largely uninsured.” Shares fell 3.7% after hours.

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  • ROKU Stock Price | Roku Inc. Cl A Stock Quote (U.S.: Nasdaq) | MarketWatch

    ROKU Stock Price | Roku Inc. Cl A Stock Quote (U.S.: Nasdaq) | MarketWatch

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    Roku Inc. Cl A

    Roku, Inc. engages in the provision of a streaming platform for television. It operates through the following business segments: Platform and Player. The Platform segment includes digital advertising and related services including the OneView ad platform, content distribution, and licensing arrangements with service operators and TV brands. The Player segment includes the sale of streaming players and audio products. The majority of streaming players, audio products and Roku TV models are sold through traditional brick and mortar retailers, such as Best Buy, Target, and Walmart, including their online sales platforms, and online retailers such as Amazon, and to a lesser extent, Roku’s website. The company was founded by Anthony J. Wood in October 2002 and is headquartered in San Jose, CA.

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  • Roku stock plunges as downbeat earnings forecast assumes ad budgets could ‘degrade’

    Roku stock plunges as downbeat earnings forecast assumes ad budgets could ‘degrade’

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    Roku Inc. shares plummeted 19% in after-hours trading Wednesday after the streaming company topped expectations with its latest results but gave a weaker-than-anticipated outlook for the holiday quarter as economic conditions could further “degrade advertising budgets.”

    For the fourth quarter, Roku executives anticipate $800 million in revenue and a loss of $135 million on the basis of adjusted Ebitda. The FactSet consensus called for $899 million in revenue as well as a $48 million adjusted Ebitda loss.

    “As we enter the holiday season, we expect the macro environment to further pressure consumer discretionary spend and degrade advertising budgets, especially in the TV scatter market,” the company said in its shareholder letter. “We expect these conditions to be temporary, but it is difficult to predict when they will stabilize or rebound.”

    Chief Financial Officer Steve Louden shared on a call with reporters following the release that the company’s forecast “reflects the fact that we see a lot of challenges in the macro environment.”

    He explained that Roku tends to be more exposed to the scatter ad market — which represents ads bought during the quarter — than the typical TV network. Scatter spending is easy for marketers to turn on, but also easier for them to turn off, he noted.

    The forecast overshadowed the results from Roku’s third quarter, which were broadly better than expected.

    The company posted a net loss of $122.2 million, or 88 cents a share, whereas it logged net income of $68.9 million, or 48 a share, in the year-earlier period. Analysts tracked by FactSet were expecting a $1.29 loss on a per-share basis.

    Roku also reported a loss of $34 million on the basis of adjusted earnings before interest, taxes, depreciation and amortization. The company had posted positive adjusted Ebitda of $130 million in the year-before quarter. The FactSet consensus was for a $74 million loss on the non-GAAP metric.

    Revenue rose to $761 million from $680 million, while analysts were anticipating $696 million.

    The company generated $670 million in platform revenue and $91 million in player revenue. Analysts were expecting platform revenue of $613 million and player revenue of $87 million.

    Roku had 65.4 million active accounts in the latest quarter, up from 63.1 million in the second quarter. Average revenue per user was $44.25 on a trailing-12-month basis, compared with $44.10 in the second quarter and $40.10 in the prior year’s third quarter.

    Analysts were anticipating 64 million active accounts and $43.40 in average revenue per user.

    Louden noted on the media call that the account numbers “outperformed expectations.” The company has seen “strong sales of smart TVs both in the U.S. and internationally,” with Louden adding that “it’s hard to tell how much is driven by a shift back to home or back to streaming, which is a very good value proposition if money is tight.”

    Viewers spent 21.9 billion hours streaming content through Roku’s platform in the period. The FactSet consensus was for 20.9 billion hours streamed.

    As companies like Netflix Inc.
    NFLX,
    -4.80%

    and Walt Disney Co.
    DIS,
    -3.94%

    explore ad-supported streaming more deeply, Louden sees opportunity for Roku to be of further value.

    “That changes their focus a bit from only thinking about subscribers to thinking about engagement” and he sees Roku’s team members as “experts in understanding how consumers look at that.”

    The company also noted in its shareholder letter that CFO Louden intends to leave Roku at some point in 2023 after helping to recruit and train his successor.

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